The plywood company’s share opened marginally lower on Friday’s trading session lower compared to its previous close when it hit a 20% upper circuit as the company approved for fundraise. The stock has gained nearly 20 percent in the past one month.
With a market capitalization of 929.36 crore, the shares of Rushil Decor opened lower today. The stock opened at Rs. 356 level on NSE and is currently trading at Rs 345.10 level.The company’s share had locked 20 percent upper circuit in yesterday’s trading session.
In a filing with the exchange the company informed that it has fixed the board meeting on 26th october to discuss and approve fundraise through right issue. After the spread of this stock market news Rushil decor hits 20 percent upper circuit within few minutes of opening bell yesterday.
The company mentioned that the board meeting is scheduled on 26th October to consider and approve the Raising of Funds by issue of Equity Shares, or any other financial instruments convertible into Equity Shares (including warrants, or otherwise) by way of Preferential Allotment or Private Placement or Qualified. Institutions Placement or Right Issue Basis or any combination thereof or any other method as may be permitted under applicable law’.
Digging into the financials of the company, the revenue has marginally dipped to Rs 192.85 Cr in Q1 FY24 compared to Rs 210.78 Cr in Q1 F 23. Its net profit also decreased to Rs 12.2 Cr in Q1 FY 24 compared to its last quarter where it reported Rs 27.2 Cr.
When we look into the important ratio of the company, Return on Equity (RoE) for FY 22-23 was increased to 25.27 percent, even Return on Capital Employed (RoCE) accelerated to 17.33 percent during the same period. The company’s P/E stands at 6.71 and makes one of the undervalued stock as the industry P/E is at 36.59.
According to the latest shareholding pattern, the promoters hold 56.43 percent of stake and the remaining 43.61 is held by the public.
The Ahmedabad based business is one of the major players in the laminate and MDF panel board industry in India and has a footprint in more than 50 countries.The company was incorporated in the year 1993, markets its products under the flagship brand named VIR.
Written by Vaibhav patil
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